I think it would be fine but I am no authority on cylinder wall thickness-just what I read on the net. I think my block I bored to 96.5 would have been fine even though it had a few spots less than .1" but since I have to have pistons made I wanted to be safe and use a smaller bore. The main reason I want a bigger bore is so I can use the 5.6 heads. The intakes will hit the cylinder wall with a smaller bore. What I found on both my blocks is the cylinders are bored off center on one bank(as evidenced by the head gasket). If the bore center was corrected it would minimize the cylinder wall thickness loss. If you look at the pictures of my "new" block the cylinder wall thickness readings from the right bank (2nd picture) the bores are all shifted to the upper left by an equal amount. The head gasket confirms it. It would gain some thickness (prevent some loss) if the overbore was centered on the gasket bore.

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Tony H
W111 280SE 3.5 Coupe
Manual transmission

Past cars:
Porsche 914 2.0
'64 Jaguar XKE Roadster
'57 Oval Window VW
'71 Toyota Hilux Pickup Truck-Dad bought new
'73 Toyota Celica GT